Lower Margins Due to Customer Trends and Intensifying Competition
First written in FY2016. 13 of 24 entries say "Restated". Latest entry: FY2025.
Masaru moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 39 of 85 companies on the "Worse" side.
107 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Waterproofing construction, the principal business of our group, is conducted on a contract basis. Changes in the value of orders received due to trends among customers placing orders, and declining profitability due to intensified competition for orders with competing companies, may reduce earning power and affect business performance and other matters.」
The risk of declining earning power due to trends among customers placing orders, competition for orders, and declining profitability continues to be described. - FY2024WorsenedAnnual report
「In the new-build market, the volume of construction work was trending upward, but competition for orders remained intense and profitability varied significantly from project to project.」
While market construction volumes increased, intense competition for orders and variation in profitability from project to project continued, ultimately appearing as a decline in full-year profit. - FY2024-Q2RestatedAnnual report
「Although the construction industry is increasingly able to pass higher construction material costs on to contract prices, construction profitability has not fully recovered because of labor shortages, longer construction periods and other factors.」
Although the pass-through of higher material costs is progressing, profitability has not recovered sufficiently due to labor shortages and extended construction periods, and the risk of declining profitability remains. - FY2023-Q3RestatedAnnual report
「Concerns remain about declining profitability due to competition for orders for large-scale redevelopment projects, and we expect uncertain conditions to continue.」
The report continues to describe intensified competition for orders for large-scale redevelopment projects and the resulting risk of declining profitability. - FY2023-Q1RestatedAnnual report
「General contractors are shifting toward a policy of accepting orders with greater attention to profitability, but price competition across the industry is expected to continue for some time.」
The view is that, although general contractors are shifting toward prioritizing profitability, price competition across the industry will continue for the time being. - FY2022WorsenedAnnual report
「As in the previous fiscal year, many new-build projects offered challenging profitability, so we pursued orders with particular attention to profitability, while in the renovation market we sought to secure earnings through proactive order-taking. However, revenue and profit declined year on year.」
The report describes a situation with many new-build projects offering challenging profitability, and states that revenue and profit declined despite selective acceptance of orders. - FY2022-Q3RestatedAnnual report
「However, although higher construction investment is partly attributable to soaring prices for construction materials and fuel, concerns remain about lower earnings due to intensified competition for large-scale redevelopment projects in central urban areas, and the outlook is expected to remain uncertain.」
Concerns about declining profitability due to intensified competition for orders for large-scale redevelopment projects in central Tokyo have continued. - FY2022-Q2MaterialisedAnnual report
「In the construction industry during the nine-month period ended [second quarter], prices of major construction materials rose substantially because resource prices increased as the situation in Ukraine became more tense and the yen weakened further owing to the Japan-US interest rate differential. Costs also increased and profitability declined as construction schedules were affected by delays in the delivery of equipment caused by global supply chain disruptions.」
Rising material prices, delivery delays, and higher costs are appearing as declining profitability, indicating that the risk of declining profitability has emerged in the actual earnings environment. - FY2022-Q1WorsenedAnnual report
「Intense competition among general contractors continues, and profit margins at the time of receiving orders are declining.」
The previously identified concern about declining profitability due to intensified competition is described as the current decline in profit margins at the time of receiving orders. - FY2021WorsenedAnnual report
「The average carried-over construction backlog of the five major super general contractors for the fiscal year ended March 2021 was also ample at ¥1.9229 trillion, the highest level in the past 10 years, but concerns have been raised about deteriorating profitability due to intensified competition for orders.」
The structure is clearly described in which the construction backlog is ample, while intensified competition for orders raises concerns about deteriorating profitability. - FY2021-Q3WorsenedAnnual report
「In the current third quarter, floor space for starts of non-residential buildings in the Tokyo metropolitan area increased 40.1% year on year, while construction orders received by the 50 largest construction companies increased 21.2% year on year, indicating a recovery trend compared with the previous year, when the first state of emergency was declared. However, projects are concentrated in large-scale redevelopment in central Tokyo, and concerns have been raised about declining profitability due to intensified competition for orders.」
While market indicators are trending toward recovery, declining profitability due to concentration on large-scale redevelopment projects in central Tokyo and intensified competition for orders has been explicitly identified, strengthening the risk of declining profitability. - FY2021-Q2WorsenedAnnual report
「We expect uncertain conditions to continue, with concerns including declining profitability due to higher labor costs resulting from labor shortages and intensified competition for orders.」
In addition to higher labor costs due to labor shortages, declining profitability due to intensified competition for orders has been explicitly identified as a concern, strengthening the risks of competition and declining profitability. - FY2021-Q1WorsenedAnnual report
「Declining construction unit prices due to weakening construction investment are also a concern going forward, and performance is expected to remain difficult to forecast.」
Declining construction unit prices accompanying the downturn in construction investment are indicated as a factor giving further concrete form to the previously identified risks of intensified competition and declining profitability. - FY2020WorsenedAnnual report
「In addition, supply and demand for construction work are tending to ease as construction investment is restrained, raising concerns about deteriorating profitability as price competition intensifies.」
The previously identified risks of intensified competition and declining profitability have taken concrete form in current concerns over easing supply and demand conditions and advancing price competition due to restrained construction investment. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The treatment that there have been no significant changes regarding the risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability has continued. - FY2019-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The treatment that there have been no significant changes regarding the risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability has continued. - FY2019-Q2RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative second-quarter period. In addition, there were no material changes in the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The treatment is that there have been no significant changes regarding the risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability. - FY2019-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The treatment is that there have been no significant changes regarding the risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability. - FY2018-Q3MaterialisedAnnual report
「Profit was affected by the early completion of low-profitability projects. Operating profit was ¥86 million, down 72.9% from the same quarter of the previous year; ordinary profit was ¥90 million, down 71.9%; and quarterly net profit attributable to owners of the parent was ¥84 million, down 38.9%.」
The early completion of low-profitability projects actually affected earnings, as reflected in declines in operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent. - FY2018-Q2RestatedAnnual report
「There were no newly emerging business or other risks during the cumulative second-quarter period. In addition, there were no material changes in the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The treatment is that there have been no significant changes regarding the risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability. - FY2018-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. There were also no material changes to the risks described in the previous fiscal year.」
The treatment is that there have been no significant changes regarding the risk of declining profitability due to trends among customers placing orders and intensified competition. - FY2017RestatedAnnual report
「Changes in the value of orders received due to trends among customers placing orders, and declining profitability due to intensified competition for orders with other competitors, may reduce earning power and affect business performance and other matters.」
The risk of declining earning power due to trends among customers placing orders, intensified competition, and declining profitability continues to be explicitly stated. - FY2017-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The treatment is that there have been no significant changes regarding the risk of declining profitability due to trends among customers placing orders and intensified competition. - FY2016First statedAnnual report
「Changes in the value of orders received due to trends among customers placing orders, and declining profitability due to intensified competition for orders with other competitors, may reduce our earning power and affect our business performance and other matters.」
Trends among customers placing orders and competing companies are described as risks that could affect earning power through fluctuations in order values and declining profitability.